100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
FIN3701 ASSIGNMENT 1 SEMESTER 2 - 2024 (232195) R50,00   Add to cart

Other

FIN3701 ASSIGNMENT 1 SEMESTER 2 - 2024 (232195)

 75 views  7 purchases

FIN3701 ASSIGNMENT 1 SEMESTER 2 - 2024 UNIQUE NUMBER: 232195 DUE DATE: 20 AUGUST 2024 QUESTION 1. REQUIRED: 1.1 Calculate the NPV for each of the three projects. (9 marks) 1.2 Calculate the annualised net present value (ANPV) of each machine. 1.3 Based on the NPV and IRR calcu...

[Show more]

Preview 3 out of 15  pages

  • July 30, 2024
  • 15
  • 2023/2024
  • Other
  • Unknown
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
All documents for this subject (106)
avatar-seller
Masters
FIN3701
ASSIGNMENT 01
SEMESTER - 2
DUE DATE: 20 AUGUST




2024


"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"

, FIN3701 ASSIGNMENT 1 SEMESTER 2 – 2024

UNIQUE NUMBER: 232195

DUE DATE: 20 AUGUST 2024




© FIN3701 1

, QUESTION 1.

REQUIRED:

1.1 Calculate the NPV for each of the three projects. (9 marks)

NPV Calculation:

a. Machine A: NPV = (𝑅42 663.11)
b. Machine B: NPV = 𝑅6 646.58
c. Machine C: NPV = (𝑅3 160.52)




1.2 Calculate the annualised net present value (ANPV) of each machine. (9 marks)

ANPV Calculation:

a. Machine A: ANPV = 𝑅10 377.79 ≈ (𝑅10 378)
b. Machine B: ANPV = 𝑅2 188.53 ≈ 𝑅2 189
c. Machine C: ANPV = 𝑅876.76 ≈ (𝑅877)




1.3 Based on the NPV and IRR calculated above, would you advise Batlokwa (Pty) Ltd to
invest their funds in the replacement? Give a reason for your answer. (2 marks)




FULL CALCULATIONS SHOWN ON THE NEXT PAGE




© FIN3701 2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Masters. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79271 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00  7x  sold
  • (0)
  Buy now